A Bankruptcy Restriction Order seeks to place certain restrictions on an individual for a period of between 2 years and 15 years.

These can either commence following a Court order, or be given voluntarily i.e. via a Bankruptcy Restriction Undertaking, (BRU).

There are a number of Grounds for a BRO, and the effects are intended to be similar to proceedings brought against Directors of failed limited companies under the Company Directors Disqualification Act 1986.

The standard of proof is civil, i.e. on the balance of probabilities (not beyond reasonable doubt as in criminal proceedings), and is therefore easier to prove. The restriction seeks to protect the public from future actions of an individual whose conduct has been either reckless or irresponsible.

For the duration of the Bankruptcy (usually 12 months) an individual will automatically be prevented from acting as a director of a limited company, or indeed being concerned with the formation, promotion or management of a limited company. This restriction will continue for the duration of the BRO / BRU, therefore beyond the 12 months of Bankruptcy. Accordingly an individual will not be allowed to trade via a limited company for the duration of the restriction. Any breach will constitute a **criminal offence**.

The Duration of a BRO will vary from case to case depending upon the severity of the individual’s conduct and level of co-operation with the Official Receiver.